Quote from: tokenlife on February 22, 2019, 07:23:37 AM

There are a lot of discussion of new DEX from Binance being released soon on its own blockchain with BNB tokens. Lets clearify a few things so nobody inside our community will have misunderstanding about what is taking place.

Nowadays founders of centralized cryptocurrency exchanges try to transfer them to decentralized one as CEX fall under various regulations. However, to make such transformation in the way that decentralized exchanges work properly and quickly and have the liquidity is almost impossible. Either something like DEX is done, or DEX is done which works slowly. There is no possibility for the moment to make a secure blockchain with 1 billion transactions.

Everyone is aware of DEX from Binance. Binance took an existing solution on the Tendermint, changed it a bit and made its own blockchain. Such blockchain will consist of 11 nodes that will work on the principle of proof-of-stake, i.e. those who will have more binance tokens will make decisions. Half of the nodes will belong to the Binance. It turns out that there are only 11 transaction confirmation centers so it is very hard to name such platform as decentralized one. For example, EOS also has only 21 nodes, which provide the governance on the blockchain, but these 21 nodes are those which have been already selected and another 200-300 nodes are in the queue for the moment.

Governance at DEX decides which projects to list or not to list. A listing at Binance DEX will cost $ 100,000 in binance tokens. Blocks will appear every second, that is, transactions will be so fast that they will be able to fit the entire volume of transactions that are at Binance CEX now. But the truth is that they will fit the deals of those users who trade with each other and who place limit orders, but there are 10-15% of such deals at the exchange. The rest of the volume, which is inflated by market makers, will not be there. In the first days of the Binance DEX operation, it will be clear what real volume is. The founder CZ says that they want to list all the tokens, but they do not have enough technical power to do this. On the other hand, he claims that Binance DEX can turn around the 10 times volume. There are a number of nuances. Firstly, it is a fear to list new tokens. Secondly, few people are now ready to pay 3-5 million dollars to be listed at the Binance DEX.

One more thing is that you do not trade tokens at Binance DEX, but trade b-tokens, at the rate of 1 b token to 1 real token. In order to exchange your b-tokens for regular tokens, you need to come to CEX in any way. This is all done in order to increase the rate of bnb.

There are two different technologies that are necessary to distinguish. They are Binance DEX technology as a cryptocurrency exchange and marketing company in order to make a pump of binance token. The founder of Binance says that there are a huge number of projects that are ready to do ICO with the help of a launchpad on the Binance blockchain and they will be given a priority. And now all start-ups will seek the opportunity to be placed there, but before they come there in addition to the BitTorent Binance DEX need to place Netscape Navigator, Qip, WinRAR, Skype, as there are a large number of companies that are dying without a token. (smile goes here) So, they can be tokenized and brought back to life by placing them in the blockchain of Binance.

A kind of ecosystem is being developed in which the token of Binance is used. The more binance tokens are kept in the stack, in the node that verifies the transaction, are used as a bitcoin substitute tokens, which are traded at the IDEX and as an investment in ICO the bigger reduction in circulation and reduction in supply are caused. And when some projects need to buy bnb tokens and pay 100,000 dollars for the listing at Binance DEX, they will come to the market, but no one will sell bnb tokens to them. Such cases will cause an increase in prices of bnb tokens. So the truth is that CZ has created a good market condition for increasing of the bnb token price, but the Binance DEX is not decentralized cryptocurrency exchange as it is. But as the mass do not use DEXes, Binance gave us a hybrid of a private blockchain in order to trade and make an imitation of DEX.

One more interesting fact is that Binance declares that you can immediately trade from your hard wallet at DEX. You connect it in 2fa, synchronized it in blockchain and your keys remain with you and the exchange cannot do anything with them. However, the keys are stored in the private blockchain of Binance. But the truth is that it is an enterprise blockchain solution in order to pump bnb token.

The more transaction in the blockchain, the less security. There will be a lot of transactions in the Binance DEX and thus the question arises if there is any problem with the Binance services, whether the Binance will be held the responsibility. Perhaps this is the first step of decentralization. But for now, this is a very successful, very good, excellent marketing campaign, which pretends to be not what it is.

Binance will do it. Sometime ago when they announced their coin info portal. Back at that time it was only logo and some information about the coin. Now they have price charts.
Take a look yourself https://info.binance.com/en/currencies/ethereum

They have progress. So they will with DEX and launchpad.

tokenrecord

Posts

Merits